Tips for making a successful offer
There is one crucial milestone that stands between finding the perfect home and getting it before someone else does — a successful offer. In a competitive market sellers have choices and are less inclined to review all offers. Buyers must be prepared to act fast and be savvy with their offers. Standing out from the crowd doesn’t always mean having the highest bid. Here are a few tips that could make the difference when you are ready to make an offer.
Get pre-approved.
Before you start home shopping, visit with your home lender. They can help you complete the initial paperwork and determine your price range. Sellers do not want to worry about accepting an offer only to discover the buyer can’t get financing, or that the approval process will take longer than necessary because the buyer is still at the starting line. A pre-approval letter from your lender proves to the buyer your offer is good and that you are serious about buying a home.
Be creative.
There are many ways to add value to your offer without simply trying to outbid the competition. Can you offer a longer move-out date? Are you willing to maintain an existing garden and provide the seller with the harvest they planted earlier in the year? Can you provide reassurance to the seller that the deal will close as promised? Alerus guarantees to close according to the approval letter terms, or we pay the seller $20,000, which can help an offer stand out without costing you anything additional. Sometimes, the most valuable quality of a buyer is that they are easy to work with, so stay flexible.
Re-evaluate your needs.
Take a hard look at the must-haves on your list and decide how much value you place on those things. You want three bathrooms, but what if you find a house that checks all the other boxes? Is it a deal breaker? Re-evaluating your needs and wants and deciding what those items are worth to you can help you determine your top bid and how aggressive you want to be when making an offer.
Remember that both your realtor and your lender are helpful resources when buying a home. Lean on them for guidance and insight to help you achieve your goal.